Medina Corporation manufactures cruising bicycles and mountain bicycles. Estimated direct labor time to produce each type of bicycle is as follows:

Estimated overhead for the

two product lines = SAR 900,000

Activity cost Pools Expected use of cost driversEstimated Overhead Costs

Setting up machines1,000 setupsSAR 150,000

Assembling90,000 Labor hoursSAR630, 0000

Inspection1,200 InspectionsSAR120, 0000

Expected use of Cost Drivers per Product

Cruising

Mountain

Number of

setup

150 850

Direct labor

hours 30,000 60,000

Number Of

Inspections 100 1,100

What do you believe

the controller should does and why ?